Russian mining and steel group Mechel has announced that it has signed a three-year agreement to supply metallurgical coal to Japanese steelmaker JFE Steel Corporation. The agreement will be in force until August 2018.
According to the agreement, Mechel will supply JFE Steel up to one million mt of metallurgical coal per year, mostly coking coal concentrate produced by Yakutugol Holding Company, as well as coking coal concentrate produced at the Elga coal deposit. The price will be determined based on the market situation.
“We consider this three-year agreement with JFE Steel as an important step in implementing our strategy of diversifying our sales and strengthening ties with Asia Pacific’s key steelmakers. Considering global commodity markets’ volatility, we make it our priority to preserve our client base and ensure a stable flow of orders for our group’s coal producers,” stated Mechel Mining Management Company’s chief executive officer Pavel Shtark.